Analysing MNEs structure and activities using country-by-country reports. Evidence from the Italian dataset

24 Pages Posted: 30 Aug 2022

See all articles by Vera Santomartino

Vera Santomartino

Department of Finance, Ministry of Economy and Finance

Barbara Bratta

Ministry of Economy and Finance, Italy

Paolo Acciari

Ministry of Economy and Finance, Italy

Date Written: August 29, 2022

Abstract

This paper is based on microdata originating in the first collection of country-by-country reporting (CbCR) – a new reporting tool to be filed by multinational enterprises (MNEs). It analyses the differences between CbCR and other widely used data sources of MNEs and presents the case of MNE activities in Italy. The CbCR dataset is used to understand the global distribution of MNE activities. Results show that foreign activities are mostly concentrated in high-income countries for all economic indicators. In low-income countries, MNEs activity appears to be concentrated in labour-intensive industries. Middle-income countries have a relatively higher importance in terms of tangible assets and employment opportunities than they do in terms of revenues and profits. Investment hubs have a relatively higher share in global MNEs profits than they do in global MNEs tangible assets and employment. The CbCR data can be useful for policymakers to obtain an indication on how a country is positioned in the global value chain (GVC) and its attractiveness for foreign companies.

Keywords: BEPS, corporate taxation, country-by-country reporting, GVC, multinational firms, offshoring

JEL Classification: F23, H25, H26, M16

Suggested Citation

Santomartino, Vera and Bratta, Barbara and Acciari, Paolo, Analysing MNEs structure and activities using country-by-country reports. Evidence from the Italian dataset (August 29, 2022). Transnational Corporations Journal, Vol. 29, No. 2, 2022, Available at SSRN: https://ssrn.com/abstract=4203598

Vera Santomartino (Contact Author)

Department of Finance, Ministry of Economy and Finance ( email )

Rome
Italy

Barbara Bratta

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

Paolo Acciari

Ministry of Economy and Finance, Italy ( email )

Via XX Settembre 97
Rome, Rome 00187
Italy

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